Low-cost alternative to expensive court battles, writes Alan Peat
A NEW framework for forwarders to settle business wrangles has been devised by the international umbrella body for the industry, FIATA (International Federation of Freight Forwarders Associations).
An arbitration tribunal is to be assembled, presided over by forwarding representatives from FIATA's extended board, and advisory body on legal matters.
This, said Edward Little, executive director of SAAFF (SA Association of Freight Forwarders), will offer our forwarders a low-cost alternative to the long, tedious and expensive law court battles which are currently the norm in disputes.
Costs, FIATA told FTW, are to be kept as low as US$500, and below a ceiling of US$3 000 - To make such a procedure viable, said their memo.
Little also sees this offering members of the industry the advantage of dealing with a tribunal composed of forwarding specialists.
Judges may know all about the law, he said, but very little about forwarding.
In this case we are dealing with people who have extensive knowledge of the industry and its procedures - and who will be able to make an informed and impartial judgement.
It will also make international disputes - the bulk of those in the industry - that much easier to solve, Little added, without the problems of dealing in international law.
SAAFF is waiting for its detailed copy of the guidelines.
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